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STRW Stock Risk & Deep Value Analysis

Strawberry Fields Reit Inc

Real Estate • REIT - Healthcare Facilities

DVR Score

0.6

out of 10

Distressed

What You Need to Know About STRW Stock

We analyzed Strawberry Fields Reit Inc using our deep value framework. Sign in to see our full verdict and DVR Score.

We ran STRW through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.

Updated May 3, 2026Run Fresh Analysis →

STRW Risk Analysis & Red Flags

What Could Go Wrong

The primary risk for STRW is its reliance on a capital-intensive, mature business model that offers limited avenues for exponential growth. Continued share dilution through the ATM program, coupled with potential increases in interest rates or tenant defaults, could erode per-share value and make even modest capital appreciation challenging.

Risk Matrix

Overall

Moderate

Financial

Medium

Market

Medium

Competitive

Medium

Execution

Medium

Regulatory

Medium

Red Flags

  • Ongoing share dilution via ATM sales ($6.1M sold, $43.9M remaining on a $165.51M market cap)

  • Q4 2025 earnings (Revenue and EPS) missed analyst estimates

  • No clear strategy for disruptive or exponential growth in a mature sector

  • Analyst price target ($13.63) offers minimal upside from current price

Upcoming Risk Events

  • 📅

    Higher interest rates impacting borrowing costs for acquisitions/refinancing

  • 📅

    Tenant financial distress or bankruptcies

  • 📅

    Negative regulatory changes affecting healthcare reimbursement

When to Reconsider

  • 🚪

    Sustained decline in Funds From Operations (FFO) per share over consecutive quarters

  • 🚪

    Major tenant defaults or unexpected vacancies in key properties

  • 🚪

    Significant and continued increases in debt-to-equity ratio without corresponding asset value growth

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What Does Strawberry Fields Reit Inc (STRW) Do?

Market Cap

$176.32M

Sector

Real Estate

Industry

REIT - Healthcare Facilities

Employees

9

Strawberry Fields REIT, Inc., is a self-administered real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties. The Company's portfolio includes 142 healthcare facilities with an aggregate of 15,500+ beds, located throughout the states of Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. The 142 healthcare facilities comprise 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals.

Visit Strawberry Fields Reit Inc Website

Investment Thesis

Strawberry Fields REIT offers a stable, income-generating investment opportunity in the non-disruptive healthcare real estate sector. Its primary appeal lies in its dividend yield and modest asset appreciation from owning and managing skilled nursing and assisted living facilities, benefiting from an aging demographic. It is not suitable for investors seeking high-risk, high-reward 10x growth within 3-5 years.

Is STRW Stock Undervalued?

Strawberry Fields REIT, Inc. operates in the mature and capital-intensive healthcare real estate sector, focusing on skilled nursing and assisted living facilities. This business model is inherently designed for stable income generation and modest asset appreciation, not the disruptive innovation or exponential market share capture characteristic of a 10x growth opportunity within 3-5 years. The company lacks scalable technology, a rapidly expanding Total Addressable Market (TAM), or a strategic vision that would drive such explosive returns. Recent Q4 2025 earnings missed expectations, and the ongoing At-The-Market (ATM) share offering indicates continued dilution, further hindering per-share growth potential. No material strategic announcements or shifts in core operations since the last analysis would warrant a substantial re-evaluation upwards. While it may offer stable income and dividend yield, it fundamentally misaligns with the criteria for a high-risk, high-reward 10x growth thesis, maintaining consistency with previous low scores.

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STRW Price Targets & Strategy

12-Month Target

$13.63

Bull Case

$15.00

Bear Case

$11.50

Valuation Basis

Analyst consensus price target for a stable income-generating REIT, reflecting limited capital appreciation potential.

Entry Strategy

For income-seeking investors, consider dollar-cost averaging near the current price ($13.15) if dividend yield is attractive, or on dips towards $12.00 (historical support if available from technical charts). Not recommended for growth investors.

Exit Strategy

Take profit on any significant rallies above the median analyst target, e.g., $14.50-$15.00. Implement a stop-loss around $11.00 if capital preservation is a priority.

Portfolio Allocation

1-2% for conservative income-focused portfolios; not suitable for growth-oriented portfolios targeting 10x returns.

Price Targets & Strategy

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Is STRW Financially Healthy?

Valuation

P/E Ratio

23.28

Profitability

Gross Margin

90.16%

Operating Margin

54.38%

Net Margin

4.89%

Return on Equity

49.30%

Revenue Growth

32.41%

EPS

$0.60

Balance Sheet

Current Ratio

2.87

Quick Ratio

2.87

Debt/Equity

65.30

Other

Beta (Volatility)

0.28

Dividend Yield

5.01%

Does STRW Have a Competitive Moat?

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Moat Rating

⚪ None

Moat Trend

Stable

Moat Sources

2 Identified

Efficient Scale (in specific local markets)Intangible Assets (tenant relationships, operational expertise)

STRW's moat is limited. While it benefits from specialized knowledge and relationships in its niche, the healthcare real estate sector is highly competitive. Properties are largely fungible, and competitive advantages are primarily derived from favorable financing, asset management, and strong tenant relationships, which are not true 'moats' in the sense of exponential growth.

Moat Erosion Risks

  • Increased competition for desirable healthcare properties
  • Rising capital costs making new acquisitions less accretive
  • Tenant specific risks impacting revenue stability

STRW Competitive Moat Analysis

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STRW Market Intelligence

Sentiment & Insider Activity

Social Sentiment

Neutral. As a REIT, STRW typically attracts income-focused investors and does not generate significant social media buzz or retail investor excitement for hyper-growth.

Institutional Sentiment

Neutral. Analyst consensus is 'Moderate Buy' with a modest price target, indicating a stable outlook rather than strong growth conviction.

Insider Activity (Form 4)

No Form 4 filings reported for insider buying or selling in the last 90 days (March 5 - May 3, 2026), indicating no significant shifts in conviction.

Options Flow

Normal options activity. No significant unusual put/call ratio or large block trades observed in the provided data, consistent with a stable, income-oriented stock.

Earnings Intelligence

Next Earnings

2026-05-08

Surprise Probability

Low

Historical Earnings Pattern

For REITs like STRW, earnings reports tend to result in moderate price movements unless there are significant surprises related to occupancy, rent collection, or guidance on acquisitions/dispositions. The stock is unlikely to experience volatile swings typical of high-growth companies.

Key Metrics to Watch

Funds From Operations (FFO) per shareOccupancy rates of facilitiesRent collection rates and lease coverage ratios

Competitive Position

Top Competitor

OHI (Omega Healthcare Investors)

Market Share Trend

Stable. The company operates in a fragmented market, and there's no data to suggest significant market share gains or losses.

Valuation vs Peers

STRW's trailing P/E of 20.28 suggests it trades roughly in line with, or slightly above, some larger, more established healthcare REITs given its small size and recent earnings miss. Without more specific comparative metrics (P/FFO, EV/EBITDA), a definitive statement is difficult, but it's unlikely to be significantly undervalued.

Competitive Advantages

  • Established relationships with healthcare operators
  • Focused portfolio in specific skilled nursing/assisted living sub-sectors
  • Geographic diversification within its niche

Market Intelligence

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What Could Drive STRW Stock Higher?

Near-Term (0-6 months)

  • Q1 2026 Earnings Report (May 8, 2026, before market open)
  • Ongoing ATM share offering completion

Medium-Term (6-18 months)

  • Potential small-scale property acquisitions
  • Lease renewals with existing tenants

Long-Term (18+ months)

  • Demographic tailwinds for senior care facilities (aging population)
  • Stable demand for skilled nursing/assisted living facilities

Catalysts & Growth Drivers

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What's the Bull Case for STRW?

  • Acceleration in FFO per share growth (contrary to current trend)

  • Significant strategic acquisitions that materially expand its market presence or improve property quality

  • Dividend increases and sustained payout ratios

Bull Case Analysis

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Competing with STRW

See how Strawberry Fields Reit Inc compares to related companies

CompanyMarket CapDVR ScoreP/ERevenueProfit MarginRev Growth

Strawberry Fields Reit Inc

STRW

$176.3M0.623.34.9%32.4%

American Tower Corp

AMT

$82.5B1.432.6$10.6B23.8%5.1%Compare →

Realty Income Corp

O

$61.1B0.561.5$1.5B17.2%0.0%Compare →

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How Strawberry Fields Reit Inc Makes Money

Strawberry Fields REIT, Inc. generates revenue by acquiring, owning, and leasing real estate properties, primarily skilled nursing and assisted living facilities, to third-party healthcare operators. These operators pay rent to STRW, providing a consistent income stream. The company then distributes a significant portion of its taxable income to shareholders as dividends, qualifying as a REIT. This model focuses on long-term property leases and asset management rather than direct patient care or healthcare services.

Read Full Business Model Breakdown

FAQ

What is the DVR Score for Strawberry Fields Reit Inc (STRW)?

As of May 3, 2026, Strawberry Fields Reit Inc has a DVR Score of 0.6 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.

What is the market capitalization of Strawberry Fields Reit Inc?

Strawberry Fields Reit Inc's market capitalization is approximately $176.3M. The company operates in the Real Estate sector within the REIT - Healthcare Facilities industry.

What ticker symbol does Strawberry Fields Reit Inc use?

STRW is the ticker symbol for Strawberry Fields Reit Inc. The company trades on the ASE.

What is the risk level for STRW stock?

Our analysis rates Strawberry Fields Reit Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.

What is the P/E ratio of STRW?

Strawberry Fields Reit Inc currently has a price-to-earnings (P/E) ratio of 23.3. This is in line with broader market averages.

Does Strawberry Fields Reit Inc pay a dividend?

Yes, Strawberry Fields Reit Inc pays a dividend with a current yield of approximately 5.01%.

Is Strawberry Fields Reit Inc's revenue growing?

Strawberry Fields Reit Inc has reported revenue growth of 32.4%. The company is showing strong top-line momentum.

Is STRW stock profitable?

Strawberry Fields Reit Inc has a profit margin of 4.9%. The company is profitable but margins are modest.

How often is the STRW DVR analysis updated?

Our AI-powered analysis of Strawberry Fields Reit Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 3, 2026.

Important Disclaimer – Not Financial Advice

Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for STRW (Strawberry Fields Reit Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.

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